Question
The quantity of M1 is $2 100 billion. The reserve ratio is 15%. The currency drain ratio is 35%. The Bank of NoCoin has
The quantity of M1 is $2 100 billion. The reserve ratio is 15%. The currency drain ratio is 35%. The Bank of NoCoin has chosen the following initial balance sheet: Assets Liabilities Reserves Deposits Government Bonds $180 Excess Reserves Loans $2,820 Based on the information above calculate the followings: Currency held by the public equal $ billion. Deposits equal $ billion. Reserves equal $ billion. Monetary base equal $ billion. Excess Reserves equal $ Lending out the Excess Reserves will billion. the Money Supply by $
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